Prime Highlights :
- Nvidia has agreed to acquire Hugging Face for a reported $12.9 billion.
- The deal would strengthen Nvidia’s position in open-source AI models and software.
Key Facts :
- Hugging Face is an open-source AI platform that hosts models, datasets and development tools.
- Nvidia invested in Hugging Face during its $235 million funding round in 2023.
Background :
Nvidia has agreed to acquire Hugging Face, an open-source artificial intelligence platform, for $12.9 billion, according to a report citing a person familiar with the deal. The proposed acquisition would rank among Nvidia’s largest deals and strengthen its position across the fast-growing AI industry.
Hugging Face hosts open-source AI models, datasets and development tools used by researchers and companies worldwide. The acquisition would give Nvidia greater control over a key part of the open-source AI ecosystem as major AI developers increasingly explore alternatives to Nvidia’s graphics processing units and develop their own chips.
The reported deal values Hugging Face at a level far above its annualised revenue of about $150 million. Nvidia had previously invested in the company as part of a $235 million funding round in 2023, which valued Hugging Face at $4.5 billion. Nvidia has since expanded its investments across the AI sector, including funding for major AI developers.
The latest agreement also marks a sharp increase from Nvidia’s earlier reported offer. The chipmaker had offered $500 million last year for an investment that would have valued Hugging Face at $7 billion, but the proposal was rejected.
Nvidia’s move comes as it expects strong growth in AI demand. The company recently forecast a 70% increase in revenue for the next fiscal year and said it has committed $18 billion for equity investments through fiscal 2027.
The reported acquisition could help Nvidia expand beyond chips and strengthen its presence in AI software, models and developer tools
